'Maintaining and encouraging competition among employers results in higher wages and salaries'
In advance of the federal government’s upcoming rules outlawing wage-fixing agreements and no-poaching agreements, Ottawa wants to hear from Canadians.
The new legislation will become law on June 23, and new language will be added to subsection 45(1.1) of the Competition Act.
Those who wish to weigh in will have until March 3 to give feedback to the Competition Bureau.
“Like agreements between competitors related to price-fixing, market allocation and output restrictions, wage-fixing and no-poaching agreements undermine competition and the efficient allocation of resources. Maintaining and encouraging competition among employers results in higher wages and salaries, as well as better benefits and employment opportunities for employees,” says the government in introducing the draft for public consultation.
The rules are intended to supplement the current Competitor Collaboration Guidelines.
They are intended to prevent employers who provide “’naked restraints” on competition, meaning “restraints on wages or job mobility that are not implemented in furtherance of a legitimate collaboration, strategic alliance or joint venture,” says the government.
The guidelines mirror those of the U.S. and Europe, despite some pushback from one Toronto lawyer last summer who deemed them “incredibly broad.”
Those who are found guilty of violating these new provisions could face fines or imprisonment up to 14 years.
Feedback can be given to the government online.
